Payment service provision with reduced transaction costs

ABSTRACT

A method for providing on-line payment services is provided where a payment service provider pays for a plurality of purchases that are made by a user during a plurality of on-line shopping sessions. An authorization is received for the payment service provider to collect a reimbursement amount from a financial institution of the user. The reimbursement amount is at least equal to a cumulative amount of the payments for the plurality of purchases made by the user during the plurality of on-line shopping sessions. The payment service provider collects the reimbursement amount in a single transaction from the financial institution of the user and pays a fee to the financial institution of the user. The fee is based on the single transaction carried out to collect the reimbursement amount rather than being applied to each of the plurality of purchases or assessed as a percentage of the reimbursement amount, which allows the payment service provider to reduce the costs associated with providing payment services.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. application Ser. No.12/887,233, filed Sep. 21, 2010, which is incorporated herein byreference in its entirety.

BACKGROUND

1. Field of the Invention

The present invention generally relates to on-line payments and moreparticularly to a system for on-line payment provision that reducestransaction costs for a payment service provider.

2. Related Art

More and more consumers are purchasing items and services overelectronic networks such as, for example, the Internet. Consumersroutinely search for and purchase products and services from merchantsand individuals alike. The transactions may take place directly betweenan on-line merchant/retailer/individual and the consumer, and payment istypically made by entering credit card or other financial information.Transactions may also take place with the aid of an on-line paymentservice provider such as, for example, PayPal, Inc. of San Jose, Calif.Such payment service providers can make transactions easier and saferfor the parties involved. Purchasing through the Internet from theconvenience of a consumer's home, office, or virtually anywhere (withmobile devices) is one main reason why on-line purchases are growingvery quickly.

However, the provision of payment services can raise a number of issues.A payment service provider may provide payment services to a number ofconsumers, and each consumer may regularly use the payment serviceprovider to make payments for purchases. For example, each consumer mayuse the payment service provider to make payments for purchases severaltimes per month. When the consumers use the payment service provider tomake the payment, the payment service provider pays the merchant orindividual with whom the purchase was made, and the merchant orindividual then pays the payment service provider a fee for the paymentservice provided. The payment service provider then requests andcollects a reimbursement for that payment from a financial institutionof the consumer. However, the payment service provider must also pay afee to the financial institution from which the reimbursement iscollected. When this scenario is repeated several time per month foreach purchase made by each consumer, these fees paid to the financialinstitutions from the payment service provider are incurred for eachpurchase, which adds significant costs to the provision of the on-linepayment service. These costs are exacerbated when particular financialinstitutions that charge higher fees are used for reimbursement forpurchases.

Thus, there is a need for an improved system for on-line payment serviceprovision.

SUMMARY

According to one embodiment, a method for providing on-line paymentservices includes paying, by a payment service provider over a network,for a plurality of purchases that are made, by a user through at leastone user device over the network, during a plurality of on-line shoppingsessions; receiving, by the payment service provider from the userthrough the at least one user device over the network, an authorizationto collect a reimbursement amount from a financial institution of theuser, wherein the reimbursement amount is at least equal to a cumulativeamount of the payments for the plurality of purchases made by the userduring the plurality of on-line shopping sessions; collecting thereimbursement amount in a single transaction, by the payment serviceprovider from the financial institution of the user over the network;and paying a fee, by the payment service provider to the financialinstitution of the user over the network, that is based on the singletransaction carried out to collect the reimbursement amount.

In an embodiment, the fee that is based on the single transactioncarried out to collect the reimbursement amount is less than acumulative amount of conventional fees that would be applied to each ofthe plurality of purchases or a fee amount that is assessed as apercentage of the reimbursement amount.

As a result, the transaction costs associated with providing paymentservices are reduced for the payment service provider.

These and other features and advantages of the present disclosure willbe more readily apparent from the detailed description of theembodiments set forth below taken in conjunction with the accompanyingdrawings.

BRIEF DESCRIPTION OF THE FIGURES

FIG. 1 a is a view illustrating an embodiment of a networked system;

FIG. 1 b is a schematic view illustrating an embodiment of a paymentservice provider involved in the networked system of FIG. 1 a;

FIG. 2 is a schematic view illustrating an embodiment of a computersystem used in the networked system of FIG. 1 a and the payment serviceprovider of FIG. 1 b; and

FIG. 3 is a flow chart illustrating an embodiment of a method forproviding on-line payment services.

Embodiments of the present disclosure and their advantages are bestunderstood by referring to the detailed description that follows. Itshould be appreciated that like reference numerals are used to identifylike elements illustrated in one or more of the figures, whereinshowings therein are for purposes of illustrating embodiments of thepresent disclosure and not for purposes of limiting the same.

DETAILED DESCRIPTION

Referring now to FIG. 1 a, an embodiment of a networked system 100 usedto make on-line payments is illustrated. The networked system 100includes a user device 102, a merchant server 104, a payment serviceprovider 106, and a plurality of financial institutions 108 a and 108 bin communication over a network 110. The payment service provider 106may be a payment service provider such as, for example, PayPal Inc. ofSan Jose, Calif. The financial institutions 108 a and 108 b may be, forexample, banking financial institutions that provide banking productsand services such as checking accounts, savings accounts, debit cards,and/or a variety of other banking products and services known in theart; credit financial institutions that provide credit products andservices such as lines of credit (e.g., credit cards), loans, and/or avariety of other credit product and services known in the art; and/or avariety of other financial institutions known in the art.

The user device 102, merchant server 104, and components of the paymentservice provider 106 and/or the financial institutions 108 a and 108 b(discussed in further detail below) may each include one or moreprocessors, memories, and other appropriate components for executinginstructions such as program code and/or data stored on one or morecomputer readable mediums to implement the various applications, data,and steps described herein. For example, such instructions may be storedin one or more computer readable mediums such as memories or datastorage devices internal and/or external to various components of thesystem 100, and/or accessible over the network 110.

The network 110 may be implemented as a single network or a combinationof multiple networks. For example, in various embodiments, the network110 may include the Internet and/or one or more intranets, landlinenetworks, wireless networks, and/or other appropriate types of networks.

The user device 102 may be implemented using any appropriate combinationof hardware and/or software configured for wired and/or wirelesscommunication over the network 110. For example, in one embodiment, theuser device 102 may be implemented as a personal computer of a user 112in communication with the Internet. In other embodiments, the userdevice 102 may be a smart phone, personal digital assistant (PDA),laptop computer, and/or other types of computing devices.

As shown, the user device 102 may include one or more browserapplications 102 a which may be used, for example, to provide aconvenient interface to permit the user 112 to browse informationavailable over the network 110. For example, in one embodiment, thebrowser application 102 a may be implemented as a web browser configuredto view information available over the Internet.

The user device 102 may also include one or more toolbar applications102 b which may be used, for example, to provide user-side processingfor performing desired tasks in response to operations selected by theuser 112. In one embodiment, the toolbar application 102 b may display auser interface in connection with the browser application 102 a.

The user device 102 may further include other applications 102 c as maybe desired in particular embodiments to provide desired features to theuser device 102. In particular, the other applications 102 c may includea payment application for payments through the payment service provider106. The other applications 102 c may also include security applicationsfor implementing user-side security features, programmatic userapplications for interfacing with appropriate application programminginterfaces (APIs) over the network 110, or other types of applications.Email and/or text applications may also be included, which allow theuser 112 to send and receive emails and/or text messages through thenetwork 110. The user device 102 includes one or more user and/or deviceidentifiers 102 d which may be implemented, for example, as operatingsystem registry entries, cookies associated with the browser application102 a, identifiers associated with hardware of the user device 102, orother appropriate identifiers, such as a phone number. In oneembodiment, the user identifier 102 d may be used by the payment serviceprovider 106 to associate the user 112 with a particular accountmaintained by the payment service provider 106 as further describedherein.

The merchant server 104 may be maintained, for example, by an on-linemerchant, digital goods seller, individual seller, and/or applicationdeveloper offering various products and/or services in exchange forpayment to be received over the network 110, including digital goods andapplications. In this regard, the merchant server 104 includes adatabase 104 a identifying available products and/or services (e.g.,collectively referred to as items) which may be made available forviewing and purchase by the user 112. Accordingly, the merchant server104 also includes a marketplace application 104 b which may beconfigured to provide information over the network 110 to the browser102 a of the user device 102. For example, in one embodiment, the user112 may interact with the marketplace application 104 b through thebrowser application 102 a over the network 110 in order to search andview various items identified in the database 104 a.

The merchant server 104 also includes a checkout application 104 c whichmay be configured to facilitate the purchase by the user 112 of itemsidentified by the marketplace application 104 b. The checkoutapplication 104 c may be configured to accept payment information fromthe user 112 and/or from the payment service provider 106 over thenetwork 110.

In one embodiment, the merchant server 104 further includes a deliveryapplication 104 d which may be configured to deliver a digital ordownloadable item to the user device 102. For example, if the user 112purchases a downloadable item or enhancement from a merchant 114 throughthe merchant server 104, the delivery application 104 d has the abilityto transmit or download the item onto the user device 102 or allowadditional access to the user 112 after payment is confirmed (e.g., bythe payment service provider 106.)

Referring now to FIGS. 1 a and 1 b, an embodiment of the payment serviceprovider 106 is illustrated in more detail. A merchant communicationengine 106 a which may be, for example, software stored on acomputer-readable medium, is included in the payment service provider106 and is operably coupled to the network 110 and a payment server 106b in order to communicate with, for example, the merchant 114 throughthe merchant server 104 and transfer information between the merchantserver 104 and the payment server 106 b. In an embodiment, the paymentserver 106 b includes computer-readable media, databases, and othercomputing components known in the art that allow the payment server 106b to record and manage the details of on-line sessions with merchantssuch as, for example, the merchant 114, that are conducted through thenetwork 110 with the payment service provider 106. In an embodiment, themerchant communication engine 106 a and the payment server 106 b may becombined into a single component of the payment service provider 106rather than separate components as illustrated in FIG. 1 b.

A user communication engine 106 c which may be, for example, softwarestored on a computer-readable medium, is included in the payment serviceprovider 106 and is operably coupled to the network 110 and a userserver 106 d in order to communicate with, for example, the user 112through the user device 102 and transfer information between the userdevice 102 and the user server 106 d. In an embodiment, the user server106 d includes computer-readable media, databases, and other computingcomponents known in the art that allow the user server 106 d to recordand manage the details of on-line sessions with users such as, forexample, the user 112, that are conducted through the network 110 withthe payment service provider 106. In an embodiment, the usercommunication engine 106 c and the user server 106 d may be combinedinto a single component of the payment service provider 106 rather thanseparate components as illustrated in FIG. 1 b.

A financial institution communication engine 106 e which may be, forexample, software stored on a computer-readable medium, is included inthe payment service provider 106 and is operably coupled to the network110 and a financial institution server 106 f in order to communicatewith, for example, the financial institutions 108 a and 108 b andtransfer information between the financial institutions 108 a and 108 band the financial institution server 106 f. In an embodiment, thefinancial institution server 106 f includes computer-readable media,databases, and other computing components known in the art that allowthe financial institution server 106 f to record and manage the detailsof on-line sessions with financial institutions such as, for example,the financial institutions 108 a and/or 108 b, that are conductedthrough the network 110 with the payment service provider 106. In anembodiment, the financial institution communication engine 106 e and thefinancial institution server 106 f may be combined into a singlecomponent of the payment service provider 106 rather than separatecomponents as illustrated in FIG. 1 b. Furthermore, any or all of themerchant communication engine 106 a, the user communication engine 106c, the financial institution communication engine 106 e, the paymentservice 106 b, the user server 106 d, and/or the financial institutionserver 106 f may be combined into one or more components of the paymentservice provider 106 rather than existing as separate components asillustrated in FIG. 1 b.

Referring now to FIG. 2, an embodiment of a computer system 200 suitablefor implementing one or more embodiments of the present disclosure isillustrated. In various implementations, the user device 102 maycomprise a computing device (e.g., a computer, laptop, smart phone, PDA,etc.) capable of communicating with the network 110. The merchant server104, payment server 106 b, user server 106 d, financial institutionserver 106 f, servers located in the financial institutions 108 a and/or108 b, and/or other components of the system 100 may utilize a networkcomputing device (e.g., a network server) capable of communicating withthe network 110. It should be appreciated that each of the devicesutilized by users, merchants, payment providers, and financialinstitutions may be implemented as the computer system 200 in a manneras follows.

In accordance with various embodiments of the present disclosure,computer system 200, such as a computer and/or a network server,includes a bus 202 or other communication mechanism for communicatinginformation, which interconnects subsystems and components, such as aprocessing component 204 (e.g., processor, micro-controller, digitalsignal processor (DSP), etc.), a system memory component 206 (e.g.,RAM), a static storage component 208 (e.g., ROM), a disk drive component210 (e.g., magnetic or optical), a network interface component 212(e.g., modem or Ethernet card), a display component 214 (e.g., CRT orLCD), an input component 218 (e.g., keyboard, keypad, or virtualkeyboard), and a cursor control component 220 (e.g., mouse, pointer, ortrackball). In one implementation, the disk drive component 210 maycomprise a database having one or more disk drive components.

In accordance with embodiments of the present disclosure, the computersystem 200 performs specific operations by the processor 204 executingone or more sequences of instructions contained in system the memorycomponent 206, such as described herein with respect to the user 112,the merchant 114, the payment service provider 106, and/or the financialinstitutions 108 a and 108 b. Such instructions may be read into thesystem memory component 206 from another computer readable medium, suchas the static storage component 208 or the disk drive component 210. Inother embodiments, hard-wired circuitry may be used in place of or incombination with software instructions to implement the presentdisclosure.

Logic may be encoded in a computer readable medium, which may refer toany medium that participates in providing instructions to the processor204 for execution. Such a medium may take many forms, including but notlimited to, non-volatile media, volatile media, and transmission media.In various implementations, non-volatile media includes optical ormagnetic disks, such as the disk drive component 210, volatile mediaincludes dynamic memory, such as the system memory component 206, andtransmission media includes coaxial cables, copper wire, and fiberoptics, including wires that comprise the bus 202. In one example,transmission media may take the form of acoustic or light waves, such asthose generated during radio wave and infrared data communications.

Some common forms of computer readable media includes, for example,floppy disk, flexible disk, hard disk, magnetic tape, any other magneticmedium, CD-ROM, any other optical medium, punch cards, paper tape, anyother physical medium with patterns of holes, RAM, PROM, EPROM,FLASH-EPROM, any other memory chip or cartridge, carrier wave, or anyother medium from which a computer is adapted to read.

In various embodiments of the present disclosure, execution ofinstruction sequences to practice the present disclosure may beperformed by the computer system 200. In various other embodiments ofthe present disclosure, a plurality of the computer systems 200 coupledby a communication link 220 to the network 110 (e.g., such as a LAN,WLAN, PTSN, and/or various other wired or wireless networks, includingtelecommunications, mobile, and cellular phone networks) may performinstruction sequences to practice the present disclosure in coordinationwith one another.

The computer system 200 may transmit and receive messages, data,information and instructions, including one or more programs (i.e.,application code) through the communication link 220 and the networkinterface component 212. The network interface component 212 may includean antenna, either separate or integrated, to enable transmission andreception via the communication link 220. Received program code may beexecuted by processor 204 as received and/or stored in disk drivecomponent 210 or some other non-volatile storage component forexecution.

Where applicable, various embodiments provided by the present disclosuremay be implemented using hardware, software, or combinations of hardwareand software. Also, where applicable, the various hardware componentsand/or software components set forth herein may be combined intocomposite components comprising software, hardware, and/or both withoutdeparting from the scope of the present disclosure. Where applicable,the various hardware components and/or software components set forthherein may be separated into sub-components comprising software,hardware, or both without departing from the scope of the presentdisclosure. In addition, where applicable, it is contemplated thatsoftware components may be implemented as hardware components andvice-versa.

Software, in accordance with the present disclosure, such as programcode and/or data, may be stored on one or more computer readablemediums. It is also contemplated that software identified herein may beimplemented using one or more general purpose or specific purposecomputers and/or computer systems, networked and/or otherwise. Whereapplicable, the ordering of various steps described herein may bechanged, combined into composite steps, and/or separated into sub-stepsto provide features described herein.

Referring now to FIG. 3, a method 300 for providing on-line paymentservices is illustrated. The method 300 begins at block 302 where aplurality of financial institutions of a user are confirmed. In anembodiment, the user 112 has (or creates) a user account with thepayment service provider 106 that may be stored in the user server 106d. The user 112 may use the user account to have the payment serviceprovider 106 make payments for purchases from third parties such as, forexample, the merchant 114. In an embodiment, in order to have the useraccount, the user 112 has provided (e.g., through the user communicationengine 106 c) the payment service provider 106 authorization, access,and/or a variety of other permissions known in the art, to at least onefinancial institution (e.g., the financial institutions 108 a and/or 108b) of the user 112 in order to collect reimbursements for purchases madeby the user 112 and paid for by the payment service provider 106. Inturn, the payment service provider 106 has confirmed (e.g., using thefinancial institution communication engine 106 e) the at least onefinancial institution of the user 112 by ensuring that the user 112 isassociated with the financial institution, that the user 112 is in goodstanding with the financial institution, and/or a variety of otherconfirmation methods known in the art.

The payment service provider 106 may store any authorizations, access,and/or other permissions to access the financial institutions of theuser 112 in the financial institutions server 106 f. In an embodiment,in order to participate in the method 300, the user 112 must provide,and the payment service provider 106 must confirm, a plurality offinancial institutions of the user 112. For example, in order toparticipate in the method 300, the user 112 must provide, and thepayment service provider 106 must confirm, a primary financialinstitution of the user 112 (e.g., a banking financial institution) anda secondary financial institution of the user 112 (e.g., a creditfinancial institution.) In an embodiment, the secondary financialinstitution must provide a guaranteed source of funds such as, forexample, a line of credit that the payment service provider 106 maycollect the reimbursement amount from in response to the user 112 nothaving sufficient funds at the primary financial institution, discussedin further detail below.

The method 300 then proceeds to block 304 where a maximum amount for areimbursement amount is determined based on a user history. Informationrelated to the user account of user 112, discussed above, may be storedon the user server 106 d in the payment service provider 106. In anembodiment, information related to the user account of the user 112 mayinclude information related to one or more financial institutions of theuser 112 such as, for example, the financial institutions 108 a and 108b; information related to any or all purchases made by the user 112 andpaid for using the payment service provider 106 (i.e., a purchasehistory of the user involving the payment service provider 106);information related to any or all reimbursements collected by thepayment service provider 106 for purchases made by the user 112 (i.e., areimbursement history for the payment service provider 106 with thefinancial institutions of the user 112); and/or a variety of otherpayment service user account information known in the art. While themethod 300 is described below with reference to one or more financialinstitutions of the user 112, one of skill in the art will recognizethat the financial institutions of the user 112 may include financialinstitutions associated with the user 112 such as, for example, aparent's banking and/or credit financial institution associated withtheir child user, a spouse's banking and/or credit financial institutionassociated with their spouse user, and/or a variety of other scenariosknown in the art.

In an embodiment, a user history of the user 112 may include some or allof the information related to the user account of the user 112 discussedabove, and may also include other user related credit and/or riskinformation related to the user 112 such as, for example, a credit scoreof the user 112, a debt report of the user 112, and/or a variety ofother credit and/or risk information known in the art. At block 302 ofthe method 300, the payment service provider 106 may review the userhistory of the user 112 and, using credit and risk methods known in theart, use that user history of the user 112 to determine a maximum amountof a reimbursement amount (discussed in further detail below) that isrelated to a cumulative amount of payments that will be made by thepayment service provider 106 for a plurality of purchases that are madeby the user 112 prior to collecting a reimbursement amount. In anembodiment, the maximum amount of the reimbursement amount is stored inthe user server 106 d.

For example, the user history of the user 112 may indicate that the user112 has made no more than $200 of purchases each month for the prior twoyear that have been paid for using the payment service provider 106 andthe payment service provider 106 has never been denied a reimbursementfrom a financial institution of the user 112, and thus the maximumamount of the reimbursement amount may be determined to be $200. Inanother example, the user history of the user 112 may indicate that theuser 112 has made approximately $1000 in purchases each month for thelast 3 years that have been paid for using the payment service provider106 and has also held an average account balance (e.g., a checkingaccount balance) at a financial institution of the user 112 ofapproximately $5000 in each month of the past 3 years, and thus themaximum amount of the reimbursement amount may be determined to be$1000. While a plurality of examples of the use of the user history todetermine the maximum amount of the reimbursement amount have beendescribed, one of skill in the art will recognize that the user historymay be used in a variety of other ways to determine the maximum amountof the reimbursement amount without departing from the scope of thepresent disclosure.

The method 300 then proceeds to block 306 where a plurality of purchasesthat are made by the user during a plurality of on-line sessions arepaid for. In an embodiment, the user 112, described above with referenceto FIG. 1 a, is involved in a plurality of on-line shopping sessionsusing the user device 102, the network 110, and one or more merchantservers such as, for example, the merchant server 104, all describedabove with reference to FIGS. 1 a and 2. For example, the user 112 mayuse the browser application 102 a to connect to one or more marketplaceapplications (e.g., the market application 104 b on the merchant server104) through the network 110 and shop the one or more marketplaceapplications for items included in databases (e.g., the database 104 a),as is known in the art. As is also known in the art, the user 112 mayuse the browser application 102 a to select one or more items that theuser 112 wishes to purchase. In an embodiment, when the user 112finishes each on-line shopping session, the user 112 may be connected,through the network 110, to a checkout application (e.g., the checkoutapplication 104 c on the merchant server 104) in order to providepayment for any items selected during each on-line shopping session.

Thus, the plurality of on-line shopping sessions may include the user112 using the user device 102 to first connect through the network 110to a plurality of different merchant servers, then purchase at least oneitem from a plurality of different merchants, and then disconnect fromthe network 110. The plurality of on-line shopping sessions may alsoinclude the user 112 using the user device 112 to first connect throughthe network 110 to a first merchant server, then purchase at least oneitem from a first merchant, then disconnect from the network 110, thenreconnect through the network 110 to either the first merchant server ora second merchant server (e.g., a timer period after the previousdisconnection from the network 110, after logging out of the network 110or the first merchant server, etc.), then purchase at least one itemfrom the first merchant or a second merchant, and then disconnect fromthe network 110. While the plurality of on-line shopping sessions havebeen described above as involving the user 112 connecting to one or moremerchant servers, one of skill in the art will recognize that thepresent disclosure is not so limited, and that a variety of differenton-line shopping sessions known in the art fall within its scope.

In an embodiment, in order to provide payment for any items selectedduring any of the plurality of on-line shopping sessions, the user 112may use the user account of the user 112 with the payment serviceprovider 106, discussed above, such that the payment service provider106 may provide payment to the merchant 114 (though, e.g., communicationbetween the merchant communication engine 106 a and the checkoutapplication 104 c over the network 110) for any items selected by theuser 112 during the plurality of on-line shopping sessions. For example,the user 112 may begin a first on-line shopping session by connecting toa merchant server over the network 110, selecting at least one item topurchase, and then using the user account such that the payment serviceprovider 106 provides payment for the at least one item, as discussedabove. The user 112 may then disconnect from the merchant server andeither reconnect to that merchant server (e.g., at a later time) orconnect to a different merchant server over the network 110, select atleast one item to purchase, and use the user account such that thepayment service provider 106 provides payment for the at least one item.This process may be repeated a plurality of times such that the paymentservice provider 106 pays for a plurality items purchased by the user112 during a plurality of on-line shopping sessions. Data related topayments made by the payment service provider 106 to one or moremerchants may be stored on the payment server 106 b.

In conventional payment provision services, after a payment serviceprovider pays a merchant for an item purchased by a user, the paymentservice provider then collects a reimbursement from a financialinstitutions of the user. However, some financial institutions such as,for example, banking financial institutions, charge a fee (e.g., $0.40)for each transaction that is carried out between the payment serviceprovider and the financial institution to collect a reimbursement. Thus,when a user purchases at least one item during each of a plurality ofon-line shopping sessions and pays for those purchases using the paymentservice provider, and the payment service provider then collectsreimbursements for the payments made for the purchases in each on-lineshopping session in separate transactions with the financialinstitution, the payment service provider must pay a fee for eachtransaction carried out to collect the reimbursements. Thus, the moreoften the user makes purchases in different on-line shopping sessions,the more fees the payment service provider must pay to the financialinstitution for collecting reimbursements for the payment of thosepurchases in separate transactions.

However, according to the present disclosure, the payment serviceprovider 106 does not collect a reimbursement from the financialinstitution of the user 112 for payments made each time the user 112makes a purchase in an on-line shopping session. Rather, each time apayment is made by the payment service provider 106 (e.g., thoughcommunication between the merchant communication engine 106 a and thecheckout application 104 c over the network 110), that payment isrecorded in the merchant server 106 b and/or the user server 106 d. Inan embodiment, a balance amount for the user 112 is stored in the userserver 106 d. In an embodiment, the balance amount may include anypayments made by the payment service provider 106 for which the paymentservice provider 106 has not yet been reimbursed. In an embodiment, thebalance amount may be updated each time the payment service provider 106makes a payment for a purchase made by the user 112.

Before making a payment to a merchant for a purchase made by the user112, the payment service provider 106 may check (e.g., throughcommunication between the payment server 106 b and the user server 106d) the balance amount to determine whether the balance amount exceedsthe maximum amount for the reimbursement amount, discussed above, or todetermine whether the requested payment will cause the balance amount toexceed the maximum amount for the reimbursement amount and, if so, thepayment service provider 106 may, for example, not make the payment tothe merchant or require an immediate reimbursement from one of thefinancial institutions of the user 112. Thus, at block 306 of the method300, the payment service provider 106 makes payments to one or moremerchants for purchases made by the user 112 over a plurality of on-lineshopping sessions, updates a balance amount for the user 112, but doesnot collect a reimbursement from a financial institution of the user112.

The method 300 then proceeds to blocks 308 and 310 where authorizationto collect a reimbursement amount is requested and received. In anembodiment, at any given time, the reimbursement amount may be thecurrent balance amount of the user 112, discussed above, and may includea cumulative amount of the payments made by the payment service provider106 for purchases made by the user 112 over the plurality of on-lineshopping sessions that the payment service provider 106 has not yet beenreimbursed for. For example, the reimbursement amount may be at leastequal to the cumulative amount of the payments made by the paymentservice provider 106 for the plurality of purchases made by the user 112during the plurality of on-line shopping sessions. In an embodiment, thereimbursement amount is a percentage of the current balance amount ofthe user 112.

In an embodiment, the payment service provider 106 requestsauthorization from the user 112 (e.g., through the user communicationengine 106 c and the user device 102 over the network 110) to collect areimbursement amount from a financial institution of the user 112, andthe user 112 provides that authorization to the payment service provider106. In an embodiment, the authorization to collect the reimbursementamount may be requested prior to the user 112 making the plurality ofpurchases. For example, the payment service provider 106 may request andthe user 112 may provide authorization to collect any reimbursementamount from a financial institution of the user 112 at block 302 of themethod 300. In another embodiment, the authorization to collect thereimbursement amount may be requested subsequent to the user 112 makingthe plurality of purchases. For example, the payment service provider106 may send the user 112 a list of all payments made by the paymentservice provider 106 for purchases made by the user 112 over theplurality of on-line shopping sessions that the payment service provider106 has not been reimbursed for, and the user 112 may be prompted toprovide authorization for the payment service provider 106 to collect areimbursement from the financial institution of the user 112 for some orall of those payments made.

The method 300 then proceeds to block 312 of the method 300 where thereimbursement amount is collected from the financial institution of theuser in a single transaction. The payment service provider 106communicates with the financial institution of the user 112 (e.g.,through communication between the financial institution communicationengine 106 e and the financial institution over the network 108) torequest and collect the reimbursement amount from the financialinstitution in a single transaction. In an embodiment, the collection ofthe reimbursement amount in block 312 of the method 300 is performed inresponse to the reimbursement amount exceeding a maximum amount. Forexample, the maximum amount for the reimbursement amount, discussedabove with reference to block 304 of the method 300, may be $200, andthe payment service provider 106 may initiate the collection of thereimbursement amount (e.g., request authorization or use a previouslyprovided authorization) in response to the balance amount of the user112, discussed above, exceeding $200. In another example, the paymentservice provider 106 may initiate the collection of the reimbursementamount upon determining that the balance amount for the user 112,discussed above, is within a predetermined amount of the maximum amountfor the reimbursement amount (e.g., within $20 of the $200 maximumamount discussed above).

In an embodiment, the collection of the reimbursement amount in block312 of the method 300 is performed in response to the expiration of apredetermined amount of time. For example, the payment service provider106 may initiate the collection of the reimbursement amount once a week,once a month, once every several months, etc. In an embodiment, the user112 may be required to authorize the collection of the entire amount ofthe cumulative current balance of the user 112 at the end of each monthperiod specified by the payment service provider 106. Thus, in anembodiment, the payment service provider 106 collects the reimbursementamount from the financial institution in a single transaction bysubmitting the reimbursement amount which, as described above, may bethe current balance amount of the user 112 and may include a cumulativeamount of the payments made by the payment service provider 106 forpurchases made by the user 112 over the plurality of on-line shoppingsessions for which the payment service provider 106 has not beenreimbursed for, to the financial institution for reimbursement. In anembodiment, if the reimbursement amount collected from a first financialinstitution of the user 112 is a percentage of the cumulative amount ofthe payments made by the payment service provider 106 for purchases madeby the user 112 over the plurality of on-line shopping sessions forwhich the payment service provider 106 has not been reimbursed for, thepayment service provider 106 may attempt to collect or collect theremaining percentage of the cumulative amount of the payments made bythe payment service provider 106 for purchases made by the user 112 overthe plurality of on-line shopping sessions for which the payment serviceprovider 106 has not been reimbursed for from a second financialinstitution of the user 112.

The method 300 then proceeds to block 314 where a fee is paid to thefinancial institution that is based on the single transaction. In anembodiment, in response to submitting the reimbursement amount to thefinancial institution for reimbursement in a single transaction, thepayment service provider 106 is charged for and pays a fee that is basedon the single transaction. As discussed above, some financialinstitutions such as, for example, banking financial institutions,charge a fee (e.g., $0.40) for each transaction that is carried outbetween the payment service provider and the financial institution tocollect a reimbursement. By not collecting a reimbursement for eachpayment made for a plurality of purchases made by a user 112 over aplurality of on-line shopping sessions, but rather collecting thereimbursement amount that includes all of the plurality of purchasesmade by the user 112 over the plurality of on-line shopping sessions,the payment service provider pays the fee to the financial institutionfor the single transaction rather than paying the fee for each of theplurality of transactions. Thus, in an embodiment, the singletransaction that is carried out for the payment service provider 106 tosubmit and collect the reimbursement amount is a transaction with thefinancial institution that incurs only one fee from the financialinstitution. In another embodiment, the single transaction that iscarried out for the payment service provider 106 to submit and collectthe reimbursement amount is a transaction in which the payment serviceprovider 106 submits a single amount (e.g., the reimbursement amount forthe plurality of payments made by the payment service provider 106 forthe plurality of purchases made by the user 112 over the plurality ofon-line shopping sessions) for reimbursement and collects that singleamount from the financial institution of the user 112.

Referring back to block 312 of the method 300, in an embodiment, thesubmission by payment service provider 106 for the reimbursement amountto the financial institution of the user 112 for collection may bedenied by the financial institution (e.g., because the user hasinsufficient funds with that financial institution to cover thereimbursement amount.) As discussed above for a particular embodiment,in order to participate in the method 300, the user 112 must provide andthe payment service provider 106 must confirm a primary financialinstitution of the user 112 (e.g., a banking financial institution) anda secondary financial institution of the user 112 (e.g., a creditfinancial institution.) So in an example, the user 112 may haveinsufficient funds in a banking financial institution such that thecollection of the reimbursement amount by payment service provider 106from that banking financial institution may be denied. The paymentservice provider 106 may collect the reimbursement amount from creditfinancial institution of the user 112 which, as discussed above, may beguaranteed source of funds such as a line of credit. Typically, creditfinancial institutions charge a fee that is a percentage (e.g., 2.4%) ofthe amount of a given transaction.

In an embodiment, the payment service provider 106 may charge the user112 a collection denied fee or a secondary financial institution feewhen the banking financial institution denies the collection of thereimbursement amount. In an embodiment, the collection denied fee orsecondary institution fee may cover the fee from the credit financialinstitution. In an embodiment, the collection denied fee or secondaryfinancial institution fee may be authorized at block 302 of the method300. In an embodiment, the collection denied fee may be a percentage ofthe fee from the credit financial institution. Credit financialinstitutions also typically do not allow the grouping or lumping ofmultiple transaction for reimbursement. However, in the case where thebanking financial institution has denied the collection of thereimbursement amount, the reimbursement amount may be re-classified tothe credit financial institution as an ‘overdraft’ such that thepayments for the plurality of purchases made by the user 112 over theplurality of on-line shopping sessions may be grouped together into thereimbursement amount and collected from the credit financialinstitution. In an embodiment, if the payment service provider 106cannot collect a reimbursement amount from any financial institution ofthe user 112, the user 112 may be disqualified from participating in themethod 300 in the future such that the payment service provider 106 willno longer make payments for a plurality of purchases made by the user112 in a plurality of on-line shopping sessions without seekingreimbursement.

Thus, a system and method have been described in which a payment serviceprovider pays for a plurality of purchases made by a user over aplurality of on-line sessions without immediately seeking reimbursementfor those payments from a financial institution of the user. The paymentservice provider then collects a reimbursement amount, in a singletransaction from the financial institution of the user, that includes acumulative amount of the plurality of payments made by the paymentservice provider for the plurality of purchases made by a user over theplurality of on-line sessions. The collecting of this reimbursementamount in a single transaction incurs only a single transaction feerather than a transaction fee for each of the plurality of purchasesmade, which results in a significant savings for the payment serviceprovider, particularly when the user makes a plurality of purchases forrelatively small amounts.

The foregoing disclosure is not intended to limit the present disclosureto the precise forms or particular fields of use disclosed. As such, itis contemplated that various alternate embodiments and/or modificationsto the present disclosure, whether explicitly described or impliedherein, are possible in light of the disclosure. For example, the aboveembodiments have focused on merchants and seller; however, a user orconsumer can pay virtually, or otherwise interact with any type ofrecipient, including charities and individuals. The payment does nothave to involve a purchase, but can be a loan, a charitablecontribution, a gift, etc. Thus, merchant as used herein can alsoinclude charities, individuals, and any other entity or person receivinga payment from a user. Having thus described embodiments of the presentdisclosure, persons of ordinary skill in the art will recognize thatchanges may be made in form and detail without departing from the scopeof the present disclosure. Thus, the present disclosure is limited onlyby the claims.

What is claimed is:
 1. A payment system, comprising: a non-transitorymemory; one or more hardware processors coupled to the memory andoperable to read instructions from the memory to perform the steps of:transmitting payments, over a network to at least one merchant, for aplurality of purchases that are made by a user; receiving, from theuser, an authorization to collect a reimbursement amount from a firstfinancial institution of the user, wherein the reimbursement amount isat least equal to a portion of a cumulative amount of the paymentstransmitted to the at least one merchant for the plurality of purchasesmade by the user; attempting to collect the reimbursement amount in asingle transaction, from the first financial institution of the userover the network, subsequent to the transmitting of the payments to theat least one merchant for the plurality of purchases made by the user;receiving, in response to attempting to collect the reimbursement amountfrom the first financial institution, a collection denial from the firstfinancial institution over the network; reclassifying the reimbursementamount in response to the collection denial to create a reclassifiedreimbursement amount that is associated with insufficient funds at thefirst financial institution; and attempting to collect, over the networkfrom a second financial institution of the user that is a creditfinancial institution, the reclassified reimbursement amount in a singletransaction, wherein a second financial institution fee that is based onthe single transaction carried out to collect the reclassifiedreimbursement amount is paid to the second financial institution of theuser over the network in response to the second financial institutionallowing the collection of the reclassified reimbursement amount.
 2. Themethod of claim 1, wherein the one or more hardware processors areoperable to read instructions from the memory to perform the steps of:reviewing a user history; and determining a maximum amount for thereimbursement amount, wherein the attempting to collect thereimbursement amount in the single transaction from the first financialinstitution of the user over the network is performed in response todetermining that the reimbursement amount is within a predeterminedamount of the maximum amount.
 3. The payment system of claim 1, whereinthe transmitting payments to the at least one merchant for the pluralityof purchases that are made by the user requires a prior authorization,received from the user prior to the plurality of purchases being made,to collect the reclassified reimbursement amount from the secondfinancial institution of the user in response to the user not havingsufficient funds at the first financial institution of the user.
 4. Thepayment system of claim 3, wherein the prior authorization, receivedfrom the user through the user device over the network prior to theplurality of purchases being made, to collect the reclassifiedreimbursement amount from the second financial institution of the userin response to the user not having sufficient funds at the firstfinancial institution of the user further comprises a priorauthorization to collect the reclassified reimbursement amount and thesecond financial institution fee from the second financial institutionof the user in response to the user not having sufficient funds at thefirst financial institution of the user.
 5. The payment system of claim1, wherein the first financial institution of the user comprises abanking financial institution.
 6. The payment system of claim 1, whereinthe user is disqualified from having subsequent multiple purchases paidfor prior to collecting a reimbursement amount for those subsequentmultiple purchases in response to the second financial institutiondenying the collection of the reclassified reimbursement amount.
 7. Thepayment system of claim 1, wherein the attempting to collect thereimbursement amount is in response to the expiration of a predeterminedamount of time.
 8. A machine-readable medium comprising a plurality ofmachine-readable instructions which, when executed by one or moreprocessors, are adapted to cause the one or more processors to perform amethod comprising: transmitting payments, over a network to at least onemerchant, for a plurality of purchases that are made by a user;receiving, from the user, an authorization to collect a reimbursementamount from a first financial institution of the user, wherein thereimbursement amount is at least equal to a portion of a cumulativeamount of the payments transmitted to the at least one merchant for theplurality of purchases made by the user; attempting to collect thereimbursement amount in a single transaction, from the first financialinstitution of the user over the network, subsequent to the transmittingof the payments to the at least one merchant for the plurality ofpurchases made by the user; receiving, in response to attempting tocollect the reimbursement amount from the first financial institution, acollection denial from the first financial institution over the network;reclassifying the reimbursement amount in response to the collectiondenial to create a reclassified reimbursement amount that is associatedwith insufficient funds at the first financial institution; andattempting to collect, over the network from a second financialinstitution of the user that is a credit financial institution, thereclassified reimbursement amount in a single transaction, wherein asecond financial institution fee that is based on the single transactioncarried out to collect the reclassified reimbursement amount is paid tothe second financial institution of the user over the network inresponse to the second financial institution allowing the collection ofthe reclassified reimbursement amount.
 9. The machine-readable medium ofclaim 8, wherein the plurality of machine-readable instructions, whenexecuted by the one or more processors, are adapted to cause the one ormore processors to perform the method further comprising: reviewing auser history; and determining a maximum amount for the reimbursementamount, wherein the attempting to collect the reimbursement amount inthe single transaction from the first financial institution of the userover the network is performed in response to determining that thereimbursement amount is within a predetermined amount of the maximumamount.
 10. The machine-readable medium of claim 8, wherein thetransmitting payments to the at least one merchant for the plurality ofpurchases that are made by the user requires a prior authorization,received from the user prior to the plurality of purchases being made,to collect the reclassified reimbursement amount from the secondfinancial institution of the user in response to the user not havingsufficient funds at the first financial institution of the user.
 11. Themachine-readable medium of claim 10, wherein the prior authorization,received from the user through the user device over the network prior tothe plurality of purchases being made, to collect the reclassifiedreimbursement amount from the second financial institution of the userin response to the user not having sufficient funds at the firstfinancial institution of the user further comprises a priorauthorization to collect the reclassified reimbursement amount and thesecond financial institution fee from the second financial institutionof the user in response to the user not having sufficient funds at thefirst financial institution of the user.
 12. The machine-readable mediumof claim 8, wherein the first financial institution of the usercomprises a banking financial institution.
 13. The machine-readablemedium of claim 8, wherein the user is disqualified from havingsubsequent multiple purchases paid for prior to collecting areimbursement amount for those subsequent multiple purchases in responseto the second financial institution denying the collection of thereclassified reimbursement amount.
 14. The machine-readable medium ofclaim 8, wherein the attempting to collect the reimbursement amount isin response to the expiration of a predetermined amount of time.
 15. Amethod for providing on-line payment services, comprising: transmittingpayments, by a payment service provider over a network to at least onemerchant, for a plurality of purchases that are made by a user;receiving, by the payment service provider from the user, anauthorization to collect a reimbursement amount from a first financialinstitution of the user, wherein the reimbursement amount is at leastequal to a portion of a cumulative amount of the payments transmitted bythe payment service provider to the at least one merchant for theplurality of purchases made by the user; attempting to collect thereimbursement amount in a single transaction, by the payment serviceprovider from the first financial institution of the user over thenetwork, subsequent to the transmitting of the payments by the paymentservice provider to the at least one merchant for the plurality ofpurchases made by the user; receiving, in response to attempting tocollect the reimbursement amount from the first financial institution, acollection denial from the first financial institution over the network;reclassifying the reimbursement amount in response to the collectiondenial to create a reclassified reimbursement amount that is associatedwith insufficient funds at the first financial institution; andattempting to collect, by the payment service provider over the networkfrom a second financial institution of the user that is a creditfinancial institution, the reclassified reimbursement amount in a singletransaction, wherein the payment service provider pays a secondfinancial institution fee that is based on the single transactioncarried out to collect the reclassified reimbursement amount to thesecond financial institution of the user over the network in response tothe second financial institution allowing the collection of thereclassified reimbursement amount.
 16. The method of claim 15, furthercomprising: reviewing, by the payment service provider, a user history;and determining, by the payment service provider, a maximum amount forthe reimbursement amount, wherein the attempting to collect thereimbursement amount in the single transaction by the payment serviceprovider from the first financial institution of the user over thenetwork is performed in response to the payment service providerdetermining that the reimbursement amount is within a predeterminedamount of the maximum amount.
 17. The method of claim 15, wherein thetransmitting payments to the at least one merchant by the paymentservice provider for the plurality of purchases that are made by theuser requires a prior authorization, received by the payment serviceprovider from the user prior to the plurality of purchases being made,to collect the reclassified reimbursement amount from the secondfinancial institution of the user in response to the user not havingsufficient funds at the first financial institution of the user.
 18. Themethod of claim 17, wherein the prior authorization, received by thepayment service provider from the user prior to the plurality ofpurchases being made, to collect the reclassified reimbursement amountfrom the second financial institution of the user in response to theuser not having sufficient funds at the first financial institution ofthe user further comprises a prior authorization to collect thereclassified reimbursement amount and the second financial institutionfee from the second financial institution of the user in response to theuser not having sufficient funds at the first financial institution ofthe user.
 19. The method of claim 15, wherein the first financialinstitution of the user comprises a banking financial institution. 20.The method of claim 15, wherein the payment service providerdisqualifies the user from having subsequent multiple purchases paid forprior to collecting a reimbursement amount for those subsequent multiplepurchases in response to the second financial institution denying thecollection of the reclassified reimbursement amount.